UK: Financial Regulatory Developments (FReD) - 14 September 2012

Last Updated: 18 September 2012

European Union and International

European Parliament (EP)

IMCO publishes mobile payments report: The Committee on the Internal Market and Consumer Protection (IMCO) has published an opinion for the Economic and Monetary Affairs Committee (ECON) in the EP on the move to integrated markets for card, internet and mobile payments. The report notes several current legal, technological and practical obstacles to full integration of the markets and calls on ECON to ensure customer confidentiality is not prejudiced by allowing any non-bank financial institutions to access information on customer bank accounts. (Source: IMCO Publishes Mobile Payments Report)

European Commission (Commission)

Barnier looks at financial centres and economic recovery: Michel Barnier, European Commissioner for Internal Market and Services, has highlighted the key role financial centres will play in the post-crisis recovery. He outlined how the international regulatory reform programme will help to restore confidence in the financial sector. To avoid hampering the financial sector's support to the real economy, the Commission's proposals allow time for financial institutions to adapt to new requirements. Other measures by the Commission will also strengthen financial centres' support to sustainable growth. These include the EU proposals for venture capital and social entrepreneurship funds, and using the UCITS brand to promote access to long-term investments for retail investors (Source: Making Financial Centres Contribute to the Wider Economy)

Commission publishes single banking supervision plans: The Commission has presented two proposals for Regulations to create a single mechanism for the supervision of all banks in the Eurozone. Under the first Regulation, the European Central Bank (ECB) will have ultimate responsibility for prudential supervision of all credit institutions in the Eurozone. This would include, among other tasks:

  • authorising credit institutions;
  • assessing acquisition and disposal of holdings in banks;
  • setting higher prudential requirements to protect financial stability when needed;
  • carrying out stress tests;
  • monitoring institutions' governance arrangements;
  • participating in early intervention of failing banks;
  • agreeing with the Commission public bank recapitalisations;
  • facilitating the supervision of banks active in several member jurisdictions; and
  • coordinating a common position of Euro members in the European Banking Authority (EBA).

The second Regulation would ensure that decision making at EBA remains balanced. The Regulation establishing EBA would be amended to create an independent panel to decide issues on breach of law or binding mediation. EBA will continue creating the Single Rulebook for credit institutions across the whole Single Market.

National authorities from Eurozone member states will carry out day-to-day supervision and implementation of ECB decisions. Areas the Regulation does not confer on the ECB will remain under their full responsibility. These include consumer protection, payment services and money laundering.

The Commission expects the Council will adopt these proposals before the end of the year. The new regulations would then be phased in during 2013 and be fully in force on 1 January 2014. (Source: FAQ on Single Banking Regulation, Proposal for Regulation Conferring Prudential Supervision on ECB and Proposal for Regulation on EBA's Interaction with ECB)

European Securities and Markets Authority (ESMA)

ESMA warns about online investing: ESMA has issued a consumer advisory notice warning of the risks of investing online. The notice reminds customers to check firms' authorisations. It warns customers to be wary of products offering high returns and to be careful when asked to provide credit card details. It also warns against systems that generate transactions automatically. (Source: ESMA Warns About Online Investing)

ESMA's stakeholder group advises on EMIR TS: The Securities and Markets Stakeholder Group (SMSG) has provided advice to ESMA on its proposed draft regulatory technical standards (TS) for EMIR (the Regulation on OTC derivatives, central counterparties (CCPs) and trade repositories). It notes concerns about ESMA's decision to deviate in several respects from the approach taken by the Committee on Payment and Settlement Systems (CPSS) and the International Organization of Securities Commissions (IOSCO) in their principles for financial market infrastructures. It says lack of convergence with international standards will increase the cost of clearing in Europe and hinder mutual recognition of third country CCPs. But this cannot be overcome by ESMA not conducting an individual assessment of third country CCPs' compliance with EMIR, as proposed. This would harm investors, who would not be able to rely on important aspects of EMIR such as client funds segregation. SMSG also warns that some technical standards are too narrowly defined and this could impact on innovation. Its advice is for ESMA to be consistent with CPSS-IOSCO principles. (Source: SMSG Advice on EMIR Draft (Regulatory) Technical Standards)

European Central Bank (ECB)

ECB publishes opinion on CSD Regulation: ECB has published its opinion on the proposed Regulation on improving securities settlement in the EU and on central securities depositories (CSDs). It strongly supports a stronger legal framework for CSDs and recommends the Regulation is fully in force by June 2015, when the single settlement engine for Europe, TARGET2-Securities, will be operational. ECB also suggests a clearer scope for the Regulation, creating colleges of authorities for CSDs engaged in cross-border activity, and the application of strict criteria to credit institutions acting as settlement bank for transactions settled in commercial bank money. (Source: ECB Opinion on CSD Regulation)

UK Government and Parliament


Treasury makes new AML orders: Treasury has amended the definition of "regulated sector" for the purposes of the Terrorism Act 2000 and Proceeds of Crime Act 2002. The definition now includes estate agents selling property outside the UK. Treasury has also amended the Money Laundering Regulations 2007 (MLR) to reflect this and the other changes it announced following its recent review of the MLR. The other changes include a provision allowing other institutions to rely on consumer credit institutions and various listed professionals for the purposes of compliance with customer due diligence obligations. The changes take effect on 1 October. (Source: Treasury Extends Regulated Sector and Treasury Amends MLR)

Treasury updates sanctions: Treasury has updated the sanctions lists in respect of Al-Qaida. (Source: Treasury Updates Sanctions)

UK Financial Services and Markets Regulator

Financial Services Authority (FSA)

FSA consults on structural reform Handbook changes: FSA has published the first of several planned consultations on the transition to the new regulatory regime. This paper deals with the changes it plans to make at "legal cutover", which it says will be only the changes necessary to implement the new structure, and other more fundamental changes. Many of the changes it proposes will mainly affect dual-regulated firms. The key proposals include:

  • changes to the General Provisions Sourcebook (GEN) to refer to the appropriate regulator and to amend the statutory status disclosure wording. However, the current licence to use the FSA logo will not carry over to the new regulators as FSA feels it is unnecessary (although firms will be able to use the Financial Conduct Authority (FCA) logo on their key facts documents). FSA proposes to give firms a six-month transitional period within which to make these changes;
  • changes to the Supervision Manual (SUP) to reflect:
    • the new powers relating to the use of Skilled Persons, and applications for variation of permissions from the appropriate regulator;
    • the new powers to grant waivers or modifications;
    • the changes in close links and controller notifications, mainly for dual-regulated firms;
    • changes to passporting requirements and to specify the appropriate regulator under the key Single Market Directives;
    • changes to notification requirements for dual-regulated firms and to reporting requirements; and
    • changes to the guidance on insurance business transfers;
  • changes to other parts of the Handbook, including a list of provisions that will be deleted or will be adopted by only one regulator.

FSA asks for responses by 12 December. (Source: Regulatory Reform: PRA and FCA Regimes Relating to Aspects of Authorisation and Supervision and Factsheet)

FSA consults on EMIR portability, client money sub-pools and CASS: FSA has launched a consultation and discussion paper on proposals to bring the Client Assets Sourcebook (CASS) in line with EMIR. More generally, it wants to make CASS client money pooling provisions more flexible and address the problems identified during the Lehman and MF Global insolvencies.

The proposals cover the following:

  • implementing the EMIR provisions aimed at ensuring portability of client positions and margin held at CCP level when a clearing member becomes insolvent. EMIR requires any such positions to be "ported" to a back-up clearing member or returned to the client. FSA is proposing to exclude monies held by clearing member firms in a client transaction account with a CCP from the provision which would otherwise pool client money on the firm's insolvency;
  • following on from the changes EMIR requires in relation to client margin held at CCP level, FSA proposes to extend its rules and allow similar choices for all client monies for any investment business. It plans to do this by introducing multiple client money pools. This will allow firms to create any number of sub-pools, designated and agreed between them and their clients. FSA is also considering mandating certain separate pools, for example to separate wholesale and retail client money. The new arrangements will have the effect of restricting shortfall to specific pools only, and allowing faster distribution of monies from non-contentious sub-pools when there is dispute in other pools; 
  • more fundamental changes to CASS in the light of experience gained during the Lehman and MF Global insolvencies. The objectives of the review are to:
    • improve the speed of return of client assets following the insolvency of an investment firm;
    • reduce the market impact of an insolvency of an investment firm that holds client assets; and
    • achieve a greater return of client assets to clients following an insolvency of an investment firm.

FSA asks for comments on the EMIR-related proposals by 16 October and the remainder of the consultation and discussion issues by 30 November. (Source: Client Assets Regime: EMIR, Multiple Pools and the Wider Review)

FSA consults on non-EEA depositor preference regimes: FSA is consulting on new requirements for UK branches of deposit-taking firms based in non-EEA countries with national depositor preference regimes. FSA proposes a two-year deadline for these firms to set up a UK-incorporated subsidiary to carry out their UK-based deposit-taking business. Alternatively, the banks could put in place arrangements ensuring that UK depositors are no worse off than the depositors in their home country if the firm fails. Until the firms implement these changes, they would have to disclose to UK branch customers that they would be subordinated in the firm's insolvency. FSA asks for comments by 11 December. (Source: Addressing the Implications of non-EEA National Depositor Preference Regimes)

FSA fines investment manager for client money breaches: FSA has fined BlackRock Investment Management (UK) Limited £9,533,100 for breaches of client money requirements. It found the firm:

  • did not put in place trust letters for certain money market deposits; and
  • failed to take reasonable care to organise and control its affairs responsibly in relation to the identification and protection of client money.

FSA found that, for a period of around 3.5 years, the firm failed to ensure it received from banks holding money market deposits for its clients the letters that CASS rules require for the purpose of acknowledging the money is held on trust and cannot be used by the bank in the event of the firm's insolvency. The errors occurred because of systems changes and put £1.36 billion of client money at risk each day. Tracey McDermott said: "This is not the first time we have seen the impact on client money overlooked as part of a reorganisation. The fine imposed today should remind all firms of the critical importance we place on ensuring proper protection of client money at all times." (Source: FSA Fines Investment Manager for Client Money Breaches)

FSA updates on RDR: FSA has published some tips for firms still preparing to implement the Retail Distribution Review (RDR) changes. Its latest factsheet gives examples that firms have discussed with it, and FSA's suggestions for what firms should be considering. (Source: Make Sure You're on Track for the RDR)

FSA fines and bans former HBOS Executive: FSA has fined Peter Cummings, former executive director of HBOS, £500,000 and banned him from holding any senior position in a regulated firm. Mr Cummings managed the Corporate Division at HBOS. FSA found that Mr Cummings:

  • pursued an aggressive expansion strategy which involved consistently taking an optimistic view and failing to address risks and concerns as they arose, although he knew about a number of systems and control failings within the division;
  • failed to exercise due skill, care and diligence by pursuing an aggressive expansion strategy within the division he managed over a two-year period, without suitable controls in place to manage the associated risks;
  • failed for eight months to take reasonable care to ensure that his division adequately and prudently managed high value transactions that showed signs of stress; and
  • during the financial crisis, raised his targets as other banks were pulling out of relevant markets.

FSA noted that some failings were present before Mr Cummings took on his role, acknowledged he had tried to make some improvements and acknowledged he had not taken all key decisions alone.   Nevertheless, it found he had breached Principle 6 of the Principles for Approved Persons. It also found he was knowingly concerned in the misconduct which led to FSA taking enforcement action against Bank of Scotland in relation to the failings (the Final Notice for which was published in March 2012). FSA said that, now the investigation is complete, it can proceed with its review into the causes of the failure of HBOS. (Source: FSA Fines and Bans Former HBOS Executive)

Financial Ombudsman Service (FOS)

FOS publishes latest complaints figures: FOS's compilation of complaints figures for the first half of 2012 shows a significant increase in Payment Protection Insurance (PPI) complaints. It shows that five large banking groups account for 71% of complaints and that 91% of cases come from fewer than 200 businesses. FOS also noted an increase in customers bringing complaints themselves, rather than through claims management companies. (Source: FOS Publishes Latest Complaints Figures)

Other Regulators/Authorities/Industry Associations     

Association of Investment Companies (AIC)

AIC calls for VCT exclusion from retail ban: AIC has called on FSA to exclude Venture Capital Trusts (VCTs) from its proposal to ban sales of unregulated collective investment schemes and close substitutes to retail markets. It says investment trusts fall outside the proposals and it believes VCTs should also do so as they operate in the same way as investment trusts in all relevant respects. (Source: AIC Calls for VCT Exclusion from Retail Ban)

British Insurance Brokers' Association (BIBA)

BIBA calls for ban on banks' insurance sales: BIBA has welcomed Martin Wheatley's initiative to prevent banks from selling insurance and other products based on flawed incentive systems. However, it goes further and suggests FSA might ban banks from selling insurance at all, as is the case in Canada. It says advice on insurance should be left to insurance professionals. (Source: BIBA Calls for Ban on Banks' Insurance Sales)

British Bankers' Association (BBA)

BBA supports incentive initiative: BBA has backed Martin Wheatley's proposals to address flawed incentive systems. It says banks want to stamp out mis-selling and says incentives should create the right long-term outcomes for customers while rewarding responsible behaviour by sales staff. (Source: BBA Supports Incentive Initiative)

BBA welcomes banking union proposals: BBA has welcomed the Commission's proposals on banking union. It is pleased the Commission has acknowledged the UK's position and is seeking to ensure balanced representation of EU Member States in decision making. (Source: BBA Welcomes Banking Union Proposals)

Global Financial Markets Association (GFMA)

GFMA calls for international benchmark standards: GFMA, comprising four international industry associations, has written to the European Commission and Parliament, the Financial Stability Board, the Bank of England, the Wheatley Review and IOSCO calling for international standards for benchmarks. It has developed a set of principles, under the headings of:

  • Governance: a sponsor must (a) take overall responsibility for the quality and integrity of a benchmark, (b) clearly define the roles and responsibilities of participants in the benchmark process and (c) operate with transparency in relation to development and changes in benchmarks, assessing the impact on market participants;
  • Benchmark methodology and quality: a sponsor should (a) ensure there is a methodology for conducting the benchmark price assessment that relies on sound data and accurately reflects market conditions and (b) follow best practice design elements; and
  • Controls: a sponsor should (a) ensure there is an appropriate control framework for conducting and maintaining the benchmark process and for distributing the benchmark price assessment, (b) keep appropriate records of inputs received and methodologies used, (c) ensure appropriate controls exist over data collection and (d) set a Code of Conduct for contributors.

It has copied its submission to national regulators in many jurisdictions. (Source: GFMA Calls for International Benchmark Standards)

Investment Management Association (IMA)

IMA calls for global standards: IMA has published the results of its annual survey, which shows market participants are concerned about the number of regulatory initiatives. It supports global coordination of regulatory change. It says a combination of extra-territoriality and protectionism makes it hard for investment managers to operate efficiently. (Source: IMA Calls for Global Standards)

International Swaps and Derivatives Association (ISDA)

ISDA comments on MiFID Compromise: ISDA has commented on the July EP Compromise Texts for the revised Markets in Financial Instruments Directive and Regulation (MiFID and MiFIR). In general, it supports the changes, but does not support:

  • the proposal to delete from MiFIR the reference to the potential for volume omission in post-trade reporting;
  • the proposed new Article 13a of MiFIR that would require all OTC transactions to take place under the Systematic Internalisation rules;
  • the lack of significant changes to the provisions on trading obligations. It wants to see targeted changes that ensure the provisions cover only appropriate transactions; or
  • the proposal to limit access provisions to cash markets.

It also commented on the June Presidency Compromise texts. Its main comments are:

  • the scope of transparency requirements under Article 7 of MiFID should be explicitly linked to contracts that are subject to the derivatives trading obligation;
  • there is a need for a clearer recognition of the importance of Request-For-Quote or voice trading for OTC derivatives markets;
  • it is important to clarify that uncleared OTC derivatives transactions should not be subject to the provisions of Article 17 of MiFIR on systematic internalisation of non-equities instruments;
  • it agrees it is appropriate to limit this to contracts that are subject to the EMIR clearing obligation and which are also sufficiently liquid; and
  • it calls for removal of the proposed ban on Organised Trading Facility (OTF) operators using proprietary capital.

Its final comments, on the texts dated 31 August, welcome many developments and discuss in detail the proposals for dealing with conflicts and duplication between the laws of different jurisdictions.  (Source: ISDA Commentary on MiFID 2/MiFIR Compromise Texts)

Industry responds to Treasury informal consultation on segregation and porting: Several industry associations (ISDA, BBA and FOA – the futures and options association) have responded to a Treasury informal consultation on the need to carve out from English insolvency law the porting of clearing clients' positions and margin. They agree on the need to ensure certainty around the porting option when a clearing member becomes insolvent. EMIR's porting option should also apply where the clearing member is acting through back-to-back transactions and holds the client's margin. The associations note that porting should be subject to agreement. These agreements should be upheld even if entered once the clearing member has defaulted. (Source: Joint Association Response to Treasury Segregation and Portability Consultation)

Industry warns against transition to other benchmarks: ISDA, IMA and the International Capital Markets Association (ICMA) have sent comments to the Wheatley review of LIBOR. They all welcome proposals for stronger governance of rate-setting, but discourage a forced transition from LIBOR to other benchmarks. This would affect contracts and cause market turmoil. (Source: ISDA Response to Wheatley Review, IMA Response to Wheatley Review and ICMA Response to Wheatley Review)  

Industry responds to Basel's fundamental review of the trading book: ISDA, GFMA, Institute of International Finance (IIF) and International Banking Federation (IBFed) have sent a joint response to the Basel Committee's consultation on the fundamental review of the trading book. They criticise how Credit Valuation Adjustment under Basel 3 introduces further double counting of the same risks. To better align risk with regulatory capital, the associations reject simple solutions and demand recognition of modern modelling capabilities that firms are using to arrive at their internal models. The associations also propose that, in deciding where the boundary between the banking and the trading books lies, the unit of account should be at the portfolio, rather than at the position, level. (Source: Industry Response to Fundamental Review of the Trading Book)

Transparency International (TI)

TI calls for more SFO resource: TI has called for the Serious Fraud Office (SFO) to have the resources to allow it properly to fight against bribery and corruption. It says SFO should never be in a position where it cannot investigate and prosecute cases because of a lack of resources. Currently, it says only seven countries, including the UK, are actively enforcing anti-bribery laws. (Source: TI Calls for More SFO Resource)

Forthcoming Events

Compliance Register MLROs conference: Jerome Walker of SNR Denton US LLP will speak at the Compliance Register MLROs and AML Professionals Conference on 21 September. For further details please contact Ben Goh, Secretary, Compliance Register.

Compliance Register Compliance Management and Practice Course: Members of our Financial Markets Dispute Resolution and Financial Services and Funds practices will be speaking at this workshop on 12 October. Places are limited. To book, please contact Ben Goh, Secretary, Compliance Register.

SNR Denton to Host Compliance Register Seminar: Emma Radmore, Andrew Barber, Katharine Harle and Madeleine de Remusat will speak at the Compliance Register's Conference: Preparing for the Regulatory Changes Ahead - Technical Update on the FSMA Regulatory Regime on 19 September. This day-long conference costs £190 + VAT per delegate. For further information, please contact Ben Goh, Compliance Register.

RDR: How Long Can It Last?: FReD readers should have received their invitation to our breakfast briefing on 26 September on the RDR and the Commission's Packaged Retail Investment Product initiative. Andrew Barber and Emma Radmore will be speaking at this seminar.

Recent Publications

Financial Crime

Dealing with Anti-Corruption Laws – the Bribery Act and FCPA in Context: This article summarises the effects of the Bribery Act and US Foreign Corrupt Practices Act. For further information, please contact Emma Radmore or Dominic Sedghi (London), or Michelle Shapiro (New York).

New EU Sanctions Expand Restrictions on Iran: Michael Zolandz, Peter Feldman, Stuart Cavet and Emma Radmore have written an update on the new EU sanctions against Iran.

Testing your ABC – the Bribery Act Six Months on: Emma Radmore  and Dominic Sedghi have updated our previous suite of articles on Bribery Act implementation.

Financial Crime Podcast: Emma Radmore joined Finance IQ to discuss the FSA's Financial Crime Guide and issues associated with cutting financial crime.

Compiling the Pieces: The FSA's Financial Crime Guide: Emma Radmore wrote an article for Compliance Monitor on FSA's new draft Financial Crime Guide.

Bribery and Sanctions presentation: Our UK and US offices gave a seminar on dealing with bribery and sanctions risks. Please check our website for up to date summaries of key sanctions regimes.

Investment Services and Markets Reform

Rate Setting and Regulation: In Everyone's Interests?: Rosali Pretorius, Madeleine de Remusat and Katharine Harle wrote an article for Financial Regulation International on the background to LIBOR setting and potential regulatory action.

Treasury Publishes LIBOR Consultation: We have written a summary of the initial report and consultation of the Wheatley Review of LIBOR.

Money through your mobile – regulation of m-payments: Andrew Barber and Emma Radmore have written an article for Compliance Monitor on the regulatory aspects of mobile payments.

Bank Notes March 2012: The latest edition of our Bank Notes newsletter includes two articles by Rosali Pretorius and Emma Radmore.

The Battle for Control of the Mobile Wallet: Alex Haffner and Ingrid Silver have written an article on the Project Oscar initiative to make mobile payments across networks easier.

Treasury presents FS Bill: We have produced a separate summary of the FS Bill and accompanying documents. For more information, please contact Rosali Pretorius or Emma Radmore.

MiFID 2 – Prescription and Change: Emma Radmore wrote an article for Compliance Monitor on the breadth of the proposals to amend the Markets in Financial Instruments Directive (MiFID 2).

I'm a commodity dealer – get me out of here!: Rosali Pretorius and Matthew Hodgson have written an article (published in two parts on Thomson Reuters Compliance Complete) on the effects of the MiFID II proposals on commodity dealers.

The Son of MiFID: Rosali Pretorius, Josie Day and Emma Radmore have written an article looking at the major impacts of the potential changes to the Markets in Financial Instruments Directive (MiFID) on hedge funds.

Prudential Regulation

UK Treasury Publishes Banking Structure Reform Plans: This article summarises the June 2012 White Paper on implementation of structural change to UK banking (as covered in FReD 15 June). For more information, please contact Rosali Pretorius, Emma Radmore or Andrew Barber.

EU Living Wills Plans – the Key Proposals: This article is the latest in our suite of articles about Living Wills and Recovery and Resolution Plans looks at the European Commission's proposals. For further information, please contact Rosali Pretorius or Andrew Barber.

Living Wills update: We have produced an update on FSA's current plans for Recovery and Resolution Plans. For further information, please contact Rosali Pretorius or Andrew Barber.

Reform of Financial Services and Banking 2012: Rosali Pretorius and Emma Radmore look forward to some of the key changes facing UK-regulated financial institutions in 2012.

Financial Stability Board Identifies 29 Global SIFIs and Announces Agreed Policy Measures: We have written an article exploring the FSB announcements and policies endorsed at the November G20 Summit. For further information, please contact Jerome Walker (US) or Rosali Pretorius (UK).

Living Wills in the US and UK: We have written an article on the current US and UK laws and proposals on living wills. For more information contact Robert Bostrom or Jerome Walker (US) or Rosali Pretorius, Emma Radmore or Andrew Barber (UK).

What the Vickers Report means to you: Rosali Pretorius and Emma Radmore have written a note on the major impacts of the Vickers Report.

Recovery and Resolution Plans – Breaking up the banks by stealth: Rosali Pretorius has written an article on FSA's proposals for Recovery and Resolution Plans.

Asset Management

AIFMD's Impact on Private Equity Funds: If you were unable to attend our briefing on an update on AIFMD implementation, critical issues and remuneration provisions, you can now watch the lecture. For further information please contact Rosali Pretorius, Richard Nicolle or Josie Day.

AIFMD Level 2: Josie Day and Emma Radmore have written an article for Compliance Monitor on ESMA's consultations on Level 2 measures and industry response.

Outsourcing for Fund Managers: Rosali Pretorius and Amanda Lewis have written a guide to key success factors for outsourcing in fund management.

Product Regulation

More Protection for Retail Markets – the EU's PRIPs Package: We have written a detailed summary of the PRIPS, IMD2 and UCITS V proposals.

SEC No Action Letter on Foreign-Issued Covered Bond: Thomas Parachini has written a briefing on the US SEC no-action letter in respect of the Royal Bank of Canada's plan to offer and sell covered bonds in the United States in a public offering registered on SEC Form F-3.

Another Stable Door?: Emma Radmore and Katharine Harle wrote an article for Thomson Reuters Complinet on IOSCO's proposals for complex product distribution.

Product Bans – A Radical New Power: Katharine Harle has written an article for Thomson Reuters Complinet on FSA's powers to ban products.

FSA's Product Design Consultations: Emma Radmore has written an article for Thomson Reuters Complinet on FSA's latest consultations on product design.

Product Intervention: Hitting the Wrong Note?: Emma Radmore and Rosali Pretorius wrote an article for Thomson Reuters Accelus on industry and FSA's responses to proposals for Product Intervention.

The Future for PRIPs: Rosali Pretorius and Emma Radmore have written an article for Compliance Monitor on current proposals affecting Packaged Retail Investment Products.

Enforcement and Litigation

The Long Arm of FSA: Overseas Firms and Senior Management Beware: Emma Radmore and Katharine Harle have written an article for Compliance Monitor on the lessons from recent FSA enforcement cases involving overseas firms and their approved persons.

FSA Lessons for Foreign Firms: Senior Management Expectations Crystal Clear: Katharine Harle, Felicity Ewing and Emma Radmore have written an article on the implications of FSA's enforcement action against Mitsui Sumitomo Insurance Company (Europe) Ltd.

Tribunal Backs CEO Against FSA Fine: Katharine HarleRichard Caird and Felicity Ewing have written an article on the Upper Tribunal's Decision reversing FSA's decision to fine John Pottage for misconduct.

More Confusion on Client Money: Rosali Pretorius and Josie Day have written an article on the Supreme Court decision in the Lehman client money case.

FSA Not Obliged to Provide Cross-Undertaking in Damages: Alexandra Doucas has written an article for Thomson Reuters Complinet on Financial Services Authority v. (1) Sinaloa Gold plc and others.

The Pitfalls of Personal Recommendations: Richard Caird, Sam Coulthard and Kattalin Truman have written an article on the Zaki and others v. Credit Suisse (UK) case.

An end to the PPI Saga? Wider Implications of the PPI Judgment: Alexandra Doucas and Katharine Harle wrote an article for Thomson Reuters Accelus on learning points for firms stemming from the PPI judgment.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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Events from this Firm
21 Sep 2017, Seminar, London, UK

Is there such a thing as "energy law"? What do "energy lawyers" do? And why should it be of interest to anyone else?

28 Sep 2017, Seminar, London, UK

On 26 July the FCA published its long-expected consultation paper on the extension of the SMCR to all FCA-authorised firms. The so-called "core regime" introduces the key concepts of regulator-approved senior managers, firm-approved certification staff and conduct rules applicable to virtually all staff.

3 Oct 2017, Conference, Zurich, Switzerland

As the founding Partner of the Europe-Iran Forum, Dentons Europe will once again support this year’s event. This compelling event which explores all Iran-related topics will take place in Zürich on 3rd and 4th October.

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Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.